Start with Uber:

We are actually uniquely geared as a species to share. It brings great benefits, after all. You have something I need and I have something you need; we can swap or at least get it at a reduced price. We don’t necessarily have to pay because we can share. We can share creative ideas, production methods, delivery of goods, distribution networks, or goods and services that are in high demand. There are two keys to this being successful on a large scale.

First of all, you need the technology that enables people to connect (in this case online and smart devices) and you need a platform where people can go and share and connect without prohibitive transactional costs. Put these together and you have an economic model that anyone can engage with.

Look at the following examples:

Earlier, customers preferred buying from big brands but are now considering pre-owned and refurbished options.

Earlier, people owned brand-new cars but are now gradually looking at alternative options of sharing or renting a car only when required.

The holiday industry has been revolutionised by the influx of home-stays and platforms like Airbnb that enable this behaviour.

The sources to borrow money apart from just a financial institution are on the rise.

The Right Now Generation
Bali is a millennial, or Generation Y — those born between 1981 and 2000 — who swears by traits such as following one’s passion, living to explore, short attention spans, unconventional thinking and being driven.

With over 64% of India’s population projected to be between 20 and 35 years by 2021, millennials are set to shape the economy of the country in terms of what, how and when they spend. Psychologists call them the "right now" generation.

Define Generation

Driving Factors for Sharing Economy

Millennials are gradually becoming less and less materialistic. There is no taboo associated when a person opts for these new-age options.

Inflation of prices and recession of economy is also letting people look at alternative options like buying pre-owned goods and/or rented goods. The rate of inflation is at its peak and there is a constant slump in the market, these trends are set to propel the sharing economy further.

Whether you call it the sharing economy or collaborative consumption, this is the biggest change in the way we buy and sell and delivers a range of economic and social benefits that have a far reach. While it is yet to fully catch on in India, the future for the sharing economy does look promising. Consumers are happier to try different things and the technology is certainly there – smartphone usage has exploded in India over the last few years, across all demographics.

This in turn is helping to create marketplaces and drive suppliers to engage with the sharing economy. Let’s take a quick look at the three most popular sectors:

• Transportation: Finding someone online who can drive you to a destination. It’s been made popular by apps such as Uber who have put customers and suppliers in contact with each other, disrupting the normal transport provision of taxis, buses and trains.

• Hospitality: You don’t have to book into a hotel but can rent a room or house off a private individual just by going onto the right app.

• Food and Beverage: Again, platforms put customers and suppliers in contact with each other at a much lower price.

These on demand technologies are not only changing the way we think but is are producing a number of other benefits. It is easier to find good deals, one of the major governing factors in take up. Costs are brought down so that we get products and services cheaper.